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View Full Version : Unusual Tenants' financial status



peternoon
21-03-2006, 20:27 PM
I say unusual but I think it is common. My wife and I are self-employed, we do our own accounts, we get income from various sources so our little company's accounts are not brilliant, we manage to make many deductions in our tax asessment so the income for tax purposes does not look substantial.

And yet we have money to pay the rent. We are looking for a house to rent but the tenants checking agencies (such as the one on this website) have their standard check list and they will not divert from it. Thery are looking for things to check on PAYE or company accounts, etc. They do not seem to be interested in personal account balance or statements.

Also, we are selling our property and will deposit a fairly large amount in our personal account but, of course, that is not going to happen until the completion date by which time we will have had to find a place to rent.

So we have money but we cannot prove it in a way that will satisfy these tenants checking agencies! The estate agents only subcontract them so they do not have a clue on the way they work.

We cannot provide a guarantor. I do not see how anybody is going to be prepared to sign their life away by saying that they will pay your rent.

What is the alternative to prove to the agencies, landlords and checking agencies that we have the money to pay the rent in the foreseeable future? what are they prepared to accept?

Jennifer_M
21-03-2006, 22:10 PM
If you can manage it you can offer to pay 6 months (or whatever it takes) rent upfront which would play in your favour.

peternoon
21-03-2006, 22:23 PM
If you can manage it you can offer to pay 6 months (or whatever it takes) rent upfront which would play in your favour.

Somebody mentioned this possibility but then it is difficult to entrust someone with 6 months worth of rent.

Jennifer_M
21-03-2006, 22:35 PM
Make sure that you are renting through a reputable agent who is member of ARLA or the NAEA and of course make sure you get a receipt for what you paid.

Pay the money when you get the keys for the property and have signed a tenancy agreement.

Once you have signed, received the keys and moved in you legally have an AST. The length of the fixed period will be stated in the agreement and that's how long you and the landlord are tied up for.
In any case if for some reason there was no papers signed, you automatically have a 6 months AST.

MrShed
21-03-2006, 23:21 PM
Peter.....I appreciate what you are saying, but once you have moved in you are both tied in for 6 months anyway. You are not paying him anything that you would not have HAD to pay him anyway.

peternoon
22-03-2006, 12:38 PM
Peter.....I appreciate what you are saying, but once you have moved in you are both tied in for 6 months anyway. You are not paying him anything that you would not have HAD to pay him anyway.

Yes, I understand this, but it's just that I have heard several stories about tenants not being able to get their deposits back, so if there is a dispute because of bad maintenace in the house or anything else that constitutes the landlord breaching the terms of the contract, then there will be the battle to get our rent and the deposit back to move somwhere else.

Jennifer_M
22-03-2006, 13:31 PM
In the same way if you weren't paying all upfront it would be difficult for a landlord to entrust you with a hundred thousand + house while he might have to battle for months in court if you didn't pay rent.

The thing is there are more chances of you having financial difficulties (health problems, no income for a few months etc.) than the house you're renting disappearing.

Tweedle Dum
22-03-2006, 13:57 PM
Peter it seems to me that you're asking a landlord to trust you when you obviously wont be trusting him. It's irrelevent what income streams you have they should all be listed on your tax return which in turn will show how much you have earned in the year. If you have two years accounts then I can't see any reason why you will be refused.

Poppy
22-03-2006, 16:56 PM
... it is difficult to entrust someone with 6 months worth of rent.

... then there will be the battle to get our rent and the deposit back to move somwhere else.
Are you sure you understand? When you enter into an agreement to rent a property for six months, you are contracted to pay for all six months’ worth of rent and the landlord is contracted to give you occupation for six months. The rent won’t be returned to you. You appear to be mixing up the return of your deposit with rent.

I think under the circumstances that you have described, many potential landlords will ask for six months’ rent in advance. You may also try asking the landlord to reduce the deposit seeing as they’ll have a rather large pot of cash up front. Are your negotiating skills up to scratch?

peternoon
23-03-2006, 09:14 AM
What I am discussing with the Estate Agents now is a negotiated reduction in rent in return for 6 months rent in advance. They say that some landlords will negotiate. Otherwise I do not see the incentive to pay so much in advance.

However, some EAs have said that they still would want to do all the income checking by the book so they do not offer any incentive to pay 6 months in advance.